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U.S. Economy Adds 204,000 Jobs in October But What Comes Next Really Matters: Gene Sperling

U.S. Economy Adds 204,000 Jobs in October But What Comes Next Really Matters: Gene Sperling

Updated from 7:30 a.m. ET

Now that Twitter’s (TWTR) IPO is out of the way, the market turns its attention to the next big thing: Friday’s employment report.

The economy added 204,000 jobs in October -- more than double the consensus -- and hiring for September and August were revised up by a combined 60,00, according to the Labor Department. The unemployment rate ticked up to 7.3% from 7.2%. Concerns that the 16-day government shutdown would mar growth appear to be unfounded but Gene Sperling, director of President Obama’s National Economic Council, says the real question is: Will the shutdown have a lasting negative impact on growth?

The answer to that question, according to Sperling, depends on whether Washington can get its collective act together and reach a compromise on the budget and debt ceiling.

“If we make it clear there’s not going to be a government shutdown, there's not going to be a threat of default, that will take some uncertainty out of the economy,” he says. “That could help lead to a better holiday shopping season, which is an important time for small businesses…and for many people to pick up extra dollars, sometimes by taking a temporary job.”

Check the accompanying video -- taped ahead of Friday's October jobs report -- to get Sperling’s prediction for whether the new super-committee can reach a budget accord before the Dec. 13 deadline, as well as “the other thing” he says Congress can do to ensure any dip in job creation is, indeed, an aberration.

Aaron Task is the host of The Daily Ticker and Editor-in-Chief of Yahoo! Finance. You can follow him on Twitter at @aarontask or email him at altask@yahoo.com